Replies to This Discussion

Permalink Reply by tuckspuddin on July 29, 2008 at 7:10

Thanks, you will have to forgive my ignorance, but I know nothing about this stuff. What is "held by production" mean?

Permalink Reply by Ladyoaks on July 29, 2008 at 11:11

Leases are set up so that you get an initial bonus payment to sign the lease + a percentage of the overall production (less costs and a bunch of ther stuff) as a royalty for your minerals.

Leases typically last for 3 years. If the oil and gas company does not begin production during that time, the lease will lapse. Meaning another company, or the same company, will have to renew the lease for you and pay you that bonus payment again.

However, if they do drill a well and produce, the company does not have to pay you a new bonus payment at the end of the third year b/c they are paying you instead through the negotiated royalty amount. Therefore, when the third year is up but you have a producing well in your leased section, then that lease is "held under production".

Permalink Reply by st Ds4 on July 29, 2008 at 3:41

Anyone heard anything about Section 21 14N 15W

Permalink Reply by Guido Truxillo on July 30, 2008 at 4:14

Section 1 landowners in Ranchland have received and offer of $22,500 per and 27.5% after payout.

Permalink Reply by Ladyoaks on July 31, 2008 at 0:53

Presumably that is Township 13N; Range 15W?

landownerPermalink Reply by kittycatmama on July 31, 2008 at 0:56

Is that the highest amount for that area? I thought that area was higher amt. from last week's posts?

landownerPermalink Reply by SnoflkSouth on August 4, 2008 at 6:58

That's what the group in Sec.1 agreed on and it is with Petrohawk.

Permalink Reply by Digger1 on August 4, 2008 at 8:10

Do you know the name and phone number of the PetroHawk Landman?

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